Why Shares of Ultimate Software Group Dropped Today

Why Shares of Ultimate Software Group Dropped Today

Shares of human capital management software provider Ultimate Software Group (NASDAQ: ULTI) slumped on Wednesday following a mixed second-quarter report. While revenue surged 20%, it nonetheless missed analyst expectations. This miss, coupled with a guidance cut, sent the stock about 11% lower by 11:20 a.m. EDT.

Ultimate Software reported second-quarter revenue of $224.7 million, up 20.5% year over year but $3.3 million below the average analyst estimate. Recurring revenue soared 23% year over year to $195.1 million, while services revenue rose 5.3% to $29.5 million.

UltiPro. Image source: Ultimate Software Group.

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Source: Fool.com